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Multifamily FHA/HUD section 223(F) Loans

  • 2.75% to 4.5% Fixed
  • Multifamily cash-outs, refinance and Acquisitions
  • Term & amortization: 35 years fully amortizing
  • $1 to $100 Million+
  • Nationwide
  • No upfront fees. We are paid when your loan is funded at closing.
  • Eligible properties: market rate properties of any class, cooperatives, affordable or subsidized housing. Construction or substantial rehab  completed 3+ years before application to HUD; student housing allowable but cash flows cannot assume multiple rents from one unit and rents must be in line with market rate multifamily comparables.
  • Subsidized: (at least 90% Section 8): 87% LTV, 1.11X DSCR, 90% acquisition to cost & 80% cash-out
  • Affordable: (with minimum set-aside 15+ years): 90% LTV, 1.15X DSCR, 87% acquisition to cost & 80% cash-out
  • Market Rate: 85% LTV, 1.18X DSCR, 85% acquisition to cost & 80% cash-out
  • Repair and rehab limitations: up to $15,000 times local cost factor (190% to 270%); repairs not 50%+ of two building systems; electrical, plumbing, mechanical, building envelope and structural
  • Commercial space limited to 25% of net rentable area & 20% of gross income
  • 0.5% rate lock deposit refunded at closing
  • Non-recourse
  • Low fees and points
  • Prepayment and assumption negotiable
  • 700+ Credit
  • Strong borrower/sponsor liquidity, net worth, financials and experience 
  • Single asset, special purpose LLC, for profit or non-profit 
  • Escrows: taxes, insurance and mortgaage insurance premiums escrowed monthly;  capital needs reserve maintained with monthly deposits to HUD guidelines (minimum  $250/year)
  • Mortgage insurance premium: due to HUD at closing and 0.6% annually thereafter; 0.25% to 0.35% for affordable and subsidized properties; 0.25% for Energy Star Certified properties.
  • HUD application fee: 0.30% of estimated loan amount due with application
  • Third party reports: appraisal, environmental & capital needs assessment
  • Timeline: typical application submitted 45 to 60 days of engagement; 60-90  days to  HUD commitment and 30-45 days to closing
  • Please click blue Multifamily FHA/HUD Link for FREE PRE APPROVAL LOI within 24 business hours. With a few clicks of your mouse it TAKES LESS THAN 3 MINUTES TO GET STARTED NOW. No credit cards, Social Security Numbers or credit checks required
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